By Jonathan Davies
German sportwear manufacturer Adidas has seen its share price rise by 6% after reports suggest a group of investors are preparing a bid for its Reebok brand.
According to the Wall Street Journal, Hong Kong’s Jynwel Capital and investment funds in Abu Dhabi are considering an offer of $2.2bn (£1.36bn).
Adidas bought Reebok in 2006 in an attempt to challenge Nike’s dominance of the US market. Although is seemed to work in the early years, Reebok’s market share has diminished recently especially after losing out to Nike on a contract to supply the National Football League (NFL) in the US.
The increase share price will come as welcome news to Adidas which has seen its shares fall by 40% this year after a number of profit warnings.
Earlier this month, Adidas announced plans to return £1.2bn to shareholders over the next three years.
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